OECD governments (including the Australian Government) have committed to stepping up their efforts to tackle the perceived problems of tax base erosion and profit shifting by multinationals. A number of significant developments are taking place in the international sphere to address these issues. It is important that taxpayers understand the possible implications that these developments may have for their organisations in the medium to long term.
This paper examines:
- the recent initiatives of the OECD, the G8 and the G20
- how Australia and other countries are proposing to tackle the perceived problem, including through measures requiring the disclosure of tax information by taxpayers under the rubric of transparency.